dear viewers welcome to this episode of your life your money what is that I have brought for you in this episode I'm going to talk about the age band 45 to 55 and the 10 things that you must Focus during this particular age group every point that I'm going to discuss in this video is super important stay till the end of the video focus on this if you are able to do that I don't see a reason why you should not pass this life with flying color this is NRI money clinic for you and I'm
Dr chra Khan but your financial guide for a happy [Music] living NRI money Clinic no hype just the right advice age 45 to 55 is second Innings of your career you played the first Innings between 25 to 35 you gained experience you could have played well you could have played not so well now people can be grouped into two categories at this age one people who are suffering getting into a midlife financial crisis or there could be another group which has played the first Innings well and could be thinking to do very well during the
second half they could be in a camp which is moving towards complacency both set of people have to play the game in a different way the rules of the game for both the people is one and the same let's look at the 10 points on which you have to focus now between this age 45 to 55 step number one evaluate your life you have played your first Innings 25 to 45 sit with your spouse and get into a conversation and find out what you did well and what you did not do well learn from your
mistakes if you have done the mistakes now you need to know what mistakes you should avoid have you used excessive credit cards have you failed to plan have you done things very well have you failed to enjoy your youthful years make a list of all things which gives you happy memories or the memories which you like to forget so this will become a ground for you to design your game Beyond this point of time both you and your wife have to do this exercise make a list write down then only we can move to the
next stage step number two make a list of your assets and liabilities 20 years of your working prior to this age has made you acquire assets have some liquid assets in the form of Bank effs Mutual Fund something in NPS a few Parcels of land or you could be having an end of service which is built into ppf or it could be anything this is the time you make a list of all the assets that you have and put a monetary value against it if it is a liquid asset you know its Valu your insurance
policy will have a value mutual funds will have a value stocks will have a value Val if it is a land you should put a valuation if it is your end of service benefit you should have a valuation for that totally T now on the other side you put all the liabilities that you need to clear Beyond this point it could be the cost of education for your children it could be clearing the car loan it could be clearing the emis for the house that you have purchased you could be having other liabilities in your
life so list the liabilities too try to match the assets and liabilities see whether you got more liability or whether you have got more assets if you have got more assets at least you look to be safe if your liabilities are more and the assets are less that means you do not have much of a risk-taking Ability Beyond this particular point so this exercise must be done and you should evaluate your risk profile now Point number three engage a financial planner whoever you are you could be a person who do not have a financial advisor
you could be a person who could be a do-it-yourself investor irrespective of your situation you must engage a financial advisor at this point of time if you were to be a do- it-yourself investor you would have done you have got certain results but that's what you thought was a right thing your financial planner can have another view remember if you are a do it to yourself investor you could be doing things only from a return angle there are other perspectives when you build your family finances you should speak to the financial adviser as a doityourself
investor you will not have experience see how will your retired life be you can never have the experience of it you should speak to some people who are already retired or you should speak to a financial planner to know what things can happen during your retired life and you should take those meaningful steps today if you're a person who do not have a financial adviser or you have not done anything on your own it means that you must need a financial adviser if you were to be a disciplined investor or if you are a person
who could have been a do-it-yourself investor if you have not done in the last 15 20 years the chances are you will not not start it now so you need an external Force to handhold you pressurize you take you the route where it should go through you must need a financial adviser if you have a financial advisor in your circles take their assistance if you do not have a financial adviser and you want to engage a financial advisor right now you can make best use of services provided by NRA money Clinic we have team of
experts who can cater to different achieving the life goals we have a lot of experts you can make best use of advisers under our fold if you have that intention all that you have to do is reach out to us through a WhatsApp message our number is shown here in the description box we have also given a link there just click on the link send your message and our team of experts are always ready to help you on that point Number Four review your insurance needs it's a must between 25 to 45 you would have
taken up a lot of insurance policies and you could have taken it for a very short period of time or you could have taken it without the adequate cover all all that you have to do now is find out how much of life insurance coverage you have don't look at how much money you are paying into the policy the right way to look at is irrespective of the type of the plan what is the sum assured I have if something were to happen to me how much is the money that is going to get paid
to my Independents total sum assured that you have how long this Su assured is valid you're 45 and if the sum assured goes away at age 50 that will not be sufficient so find out till what age the sumur will be active now go back to the previous steps find out whether your assets are more or liabilities are more if your liabilities are more and these liabilities cannot be covered with the existing Insurance uh that you have it's time that you buy the required insurance even at this age but buying insurance at 45 years and
above is a tricky game it's not going to be cheap anymore it's going to be pretty expensive to buy the insurance cover what you can do is you can calculate how much Insurance you need and instead of buying that insurance for a long period of time you could be buying that for a shorter period of time so that your premiums will remain low if your finances do not permit and you cannot afford to pay a large insurance premium all that you have to do is look I need an insurance cover for 2 CR rupees but
I cannot afford it so try to buy 1 CR or you can try to buy 50 lakhs so you have to hedge your position if something were to go wrong your families will be put into difficulty I cannot give them the full insurance cover but at least a PO of your risk be transferred to the insurance company this must be done do not put away Insurance because you have reached 45 see if something were to go wrong if you were to suffer a critical illness or if you were to suffer because of any particular disease
a road accident anything could be your families will be put into deep distress because your assets are lesser your liabilities are more Point number five your retirement is visible now and retirement planning is a top priority if you have already started your retirement planning try to build on it increase it the simple thing to keep in mind is higher the amount the better if you have not started if you do not start now your retirement is not going to be a Bed of Roses it is going to be the most Troublesome period of your life
you have to prioritize your retirement planning over and above your child education if you are put into a conflicting situation that I need money for my children's education I need need money for my retirement you have to prioritize retirement planning your children's education can be done using student loans that's a possibility you have to put more and more money towards retirement planning right now at 45 years of your age your life is a one day match at 50 years of your age it's a 2020 match the shorter the time span with which you play this
game the asking rate increases the chances of you hitting the success or the becoming a loser will become obvious so if you are Beyond 45 make no mistake here put more and more money towards retirement planning how to do the retirement planning it's a very complex thing you must need a financial adviser it's not easy to plan the retirement that easily most people get confused with the thought that retirement planning is having a lot of money money is important is just not having money will create a very happy retirement for you so you need to
be speaking to your financial planner you need to be providing a larger resources towards your retirement planning and it just cannot wait and start that today itself Point number six a home to leave since the retirement is going to be visible now you should have developed a Clarity by this where are you going to retire which country you are going to go and stay which city you are going to leave develop that Clarity if you still don't have a Clarity within next 1 2 3 years you must develop that Clarity and think about buying a
house or building your own house as the days come closer to your retirement it is obvious that you must have a house to go and stay during your initial years of 25 to 45 you could have bought a house in different places you could have plots of land let's say that you have an house in Mangalore and you have no intention to retire in Mangalore and you decide to leave in Mumbai your focus should be on how will I have a house in Mumbai and you can start getting out of unwanted real estate which is
spread across different places different buildings different plots of land and use the resources to build that house that you have to leave during your retirement days focus on it now the best way I would suggest is if you have multiple real estate in different parts of the world think about the real estate that you don't need and dispose it of and use that money to build a house where your retirement will happen Point number seven children's education it's a very emotional issue children are The Darlings in the the home you have to fund children's education
many people do the mistake here remember one thing sending your children to Great institution itself will not create success in their life if they are deserving for that if they are intelligent enough if they qualify on their own it's perfectly fine but do not fall into the Trap of spending enormous amount of money just to send your children to Great Schools instead create a desire in them that they have to excel in life if something is a shortage in their life it creat a desire in them you try to give them each and everything probably
that drive they will lose and whether they're going to be Successful Failure we cannot tell anything the conflict that will arise here is I need so much of a money for children's education I haven't done my retirement planning what shall I do first attempt the retirement planning your children education must be attempted using taking the educational loan government has got so many schemes now children can study using the education loan when your children cross 10th standard or so you should inculcate a thought in their mind that they should study taking the education loan and the
responsibility of clearing this education loan should belong to your children children of today get employed by 22 23 25 years of age they'll have lots of money in their hands they don't get married and they waste these resources instead if they take the responsibility of clearing the education loan it will reduce the burden on parents and it will help them to allocate the resources towards retirment planning every person who is watching this video I cannot say that they are the lucky ones who will have a large amount of cash flow in their life there are
lot of people at the lower end of the pyramid who will struggle to strike a balance between a retirement funds and the education planning for the children so children should come forward and take the education loan and as a parent you should nudge your children towards these thoughts don't do the mistake of overspending on children's education and neglecting your retirement planning Point number eight your health insurance by 45 to 55 years your body will have guest in the form of lifestyle diseases like diabetes blood pressure cholesterol arthritis it could be anything evaluate your health condition
if you are a healthy person if you're an NRA then you should try to take a health insurance 2 to 3 years before you go back to India but unfortunately if you are a victim of any of these things or any other lifestyle disease I would suggest think think about buying a health insurance plan right now just for the reason that at a later point of time you may get it or you may not get it many people suggest that you should buy a health insurance because the cost will rise over a period of time
that cannot be avoided health insurance is not like life insurance the insurance premium you pay in case of health insurance follows the age band 25 to 35 35 to 45 and beyond that point every 5 years or every 3 years your premiums will keep moving up the issue is can I get a health insurance or not that's the biggest problem if you are still in doubt all that you can do is buy a topup health insurance plan thereby you can keep the premiums low if there were to be uh smaller claims you can manage with
your finances if there is a larger claim that will come the topup plan can take care of it top of plan is a plan where you buy a large health insurance cover but you will say I will not accept the first few lakh 1 lakh 2 lakh 5 lakh as per your policy terms you will say I will not make a claim on this smaller claims but if there were to be a bigger claim that is the time I will make a claim what is the advantage of buying a topup plan there are two advantages
one you are transferring the bigger risk to the insurance company you will keep the premium that you pay for the plan a much lower level the third Advantage is when you buy a topup health insurance plan one thing you are very assured when you come back to India if you don't get a health insurance at that point of time at least this top up Health Plan can continue and your bigger expenses to your health insurance uh can be transferred to health insurance company Point number nine restructure your real estate portfolio I do fact finds with
lots of people day in and day out people keep coming to us and we keep evaluating people it's obvious it's normal for me to see people have multiple real estate between this age group of 45 to 55 they have purchased some small pieces of land here and there they have got multiple houses all these things are quite common at this particular age my best suggestion for you is restructure this real estate portfolio why have you kept it here do you need it can you manage it when you retire you are a older person you can't
go behind it you can't run behind people to sell it to rent it to move from one place to another place decide what do you want to do with this if you want it and if you have purchased it with a need based that is I'm going to go and leave there or I have purchased this because my parents have to go and live there leave it as it is if it is an unwanted real estate liquidate it and move it into either a financial asset or the fractional commercial real estate what is the advantage
you get one cleaning up you don't have to remember maintain find a document keep searching all these things are not there it will simplify when you move your assets to financial asset it could be an FD it could be a mutual fund stocks NPS retirement plan you name it annu you can control it with the click of the button and the money that you having the financial assets are available to you on call what is the advantage you move it to a fractional commercial real estate when you move to a fractional commercial real estate it
will start generating an income for you immediately see at this age you are in a high income phase as well as a high expense pH the chances are that sometimes in spite of a higher income your expenses could be higher and you will not be able to meet that a requirement of cash so if you have a second income in the form of fractional commercial real estate then it can add to your income and it can reduce your burden on cash flow so that will be very helpful likewise before you retire if you have developed
this portfolio of fractional commercial real estate which gives you a good handsome return then it can become a preparation for your retirement cash flow as well we have done detailed videos on fractional commercial real estate you can go through the playlist which we have created on our channel here I think we have done six seven videos on this particular subject how fractional real estate works what are the rents you get how do you make return your regulations around it every question that could be there in your mind are answered in these videos search through the
playlist and you will get these videos Point number 10 keep a control on your lifestyle upgrade it's obvious 45 to 55 you are at a high income phase you are moved up the ladder you could be in a much better position you could be competing with your colleagues your friends or your relatives try to move up the ladder it has two consequences one it creates a drain on your cash flow it increases your cash burn you earn an x amount of money and the Y is your cash outflow chances are that the Y may increase
beyond x which is your income this is one risk point the second risk point is you will get adjusted to this new lifestyle and by 60 years when you retire you don't have this cash flow and you will start feeling fish out of water during your retirement days the other major problem with the upgrade on lifestyle is your children may get habituated to this lifestyle you do not know what could be the life of these children probably you could be sewing a seed of failure in the life of your children children will follow the parents
they get emulated from the lifestyle of their parents they will see what values my parents live with and children will try to copy that so when you increase your lifestyle be very very mindful of what impact it will leave on your children what impact it will leave on your cash flow and how will you manage when you retire and you don't have a cash flow so be very careful about increasing your lifestyle upgrade dear viewers I would like to hear from you about your thoughts on the 10 points that I have raised what do you
feel do you have a differing opinion what have you seen in the life of people who are between 45 to 55 do you agree with these points I would like to hear from you leave those comments in the comment section below right now dear viewers hope the video that have done today helped you to understand the points where you have to focus if you passing through this age band of 45 to 55 if it did give you the right direction don't forget to give me a thumbs up if you are watching my channel for the
first time or if you are yet to subscribe for the Channel please hit that subscribe button right now and press the Bell icon do not forget to share these videos with your friends and relatives near and dear ones and on all the WhatsApp groups on which you are connected with thank you very much for watching this episode on NRA money Clinic I shall be back with you next Friday with yet another thought on your life your money till then stay safe Jay hind press the Bell icon for more details and subscribe our [Music] Channel
